Bitcoin Cash [BCH] Briefly Drops in Market Cap Rankings

The controversial hard fork which took place last week has taken key resources from Bitcoin Cash. Some hash power supporting the project has left to support the hard forked Bitcoin Cash SV. The price is reflecting this and currently trades close to $200 on many exchanges after trading above $600 about a week prior to the hard fork.

Earlier today, Bitcoin Cash dropped below Stellar Lumens in terms of cryptocurrencies ranked by the total market cap. Bitcoin Cash has since reclaimed the number four spot, but Bitcoin Cash, Stellar Lumens, and EOS are all very close regarding market cap rankings.

Cryptocurrency Market Cap Rankings

Momentum is strongly on the side of the sellers in Bitcoin Cash, and it seems likely that the cryptocurrency could drop below $200. Both the RSI and MACD are decreasing reflecting this strong seller momentum.

Today’s daily candle is currently forming a Doji candle. A Doji candle is a candle with little or nobody and shows indecision in the market. It is likely forming due to Bitcoin Cash trading so close to $200. A drop below $200 may result in a sharp decline as $200 represents a key psychological trading point.

Bitcoin Cash Daily Chart – Source: Tradingview.com

Key Takeaways:

As key resources leave Bitcoin Cash to support the forked version Bitcoin Cash SV, the price continues its decline close to the important $200 point.

Bitcoin Cash briefly dropped below Stellar Lumens in the market cap rankings but has since reclaimed its spot as the fourth largest cryptocurrency by market cap.

Momentum is strongly on the side of the sellers in Bitcoin Cash with both RSI and MACD decreasing.

A drop below $200 may result in a sharp sell-off with $200 representing a key psychological point.

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